TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPH - US87265H1095 - Common Stock
33.885 USD
+0.07 (+0.22%)
Overall TPH gets a fundamental rating of 5 out of 10. We evaluated TPH against 60 industry peers in the Household Durables industry. TPH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TPH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TPH was profitable.
- In the past year TPH had a positive cash flow from operations.
- Each year in the past 5 years TPH has been profitable.
- In the past 5 years TPH always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TPH (6.22%) is comparable to the rest of the industry.
- TPH has a Return On Equity (9.39%) which is comparable to the rest of the industry.
- The Return On Invested Capital of TPH (6.45%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TPH is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 9.39% | ||
| ROIC | 6.45% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
1.3 Margins
- The Profit Margin of TPH (8.27%) is better than 71.67% of its industry peers.
- In the last couple of years the Profit Margin of TPH has grown nicely.
- Looking at the Operating Margin, with a value of 10.40%, TPH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of TPH has grown nicely.
- With a Gross Margin value of 22.20%, TPH is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
- TPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 8.27% | ||
| GM | 22.2% |
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPH is creating some value.
- The number of shares outstanding for TPH has been reduced compared to 1 year ago.
- Compared to 5 years ago, TPH has less shares outstanding
- TPH has a better debt/assets ratio than last year.
2.2 Solvency
- TPH has an Altman-Z score of 3.90. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.90, TPH is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
- The Debt to FCF ratio of TPH is 4.34, which is a neutral value as it means it would take TPH, 4.34 years of fcf income to pay off all of its debts.
- TPH has a Debt to FCF ratio of 4.34. This is comparable to the rest of the industry: TPH outperforms 55.00% of its industry peers.
- A Debt/Equity ratio of 0.36 indicates that TPH is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.36, TPH is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.74
WACC8.75%
2.3 Liquidity
- TPH has a Current Ratio of 9.02. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
- TPH has a Current ratio of 9.02. This is amongst the best in the industry. TPH outperforms 90.00% of its industry peers.
- A Quick Ratio of 1.99 indicates that TPH should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.99, TPH belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.02 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
- TPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.67%.
- TPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.86% yearly.
- The Revenue for TPH has decreased by -16.60% in the past year. This is quite bad
- The Revenue has been growing slightly by 7.82% on average over the past years.
EPS 1Y (TTM)-29.67%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-45.76%
Revenue 1Y (TTM)-16.6%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-25.74%
3.2 Future
- The Earnings Per Share is expected to decrease by -15.26% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -8.56% on average over the next years.
EPS Next Y-41.41%
EPS Next 2Y-30.62%
EPS Next 3Y-15.26%
EPS Next 5YN/A
Revenue Next Year-23.15%
Revenue Next 2Y-16.48%
Revenue Next 3Y-8.56%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- TPH is valuated reasonably with a Price/Earnings ratio of 10.00.
- 71.67% of the companies in the same industry are more expensive than TPH, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TPH is valued rather cheaply.
- A Price/Forward Earnings ratio of 14.58 indicates a correct valuation of TPH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TPH is on the same level as its industry peers.
- TPH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TPH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TPH is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.73 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
- The decent profitability rating of TPH may justify a higher PE ratio.
- A cheap valuation may be justified as TPH's earnings are expected to decrease with -15.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-30.62%
EPS Next 3Y-15.26%
5. Dividend
5.1 Amount
- No dividends for TPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TRI POINTE HOMES INC / TPH FAQ
What is the ChartMill fundamental rating of TRI POINTE HOMES INC (TPH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TPH.
Can you provide the valuation status for TRI POINTE HOMES INC?
ChartMill assigns a valuation rating of 5 / 10 to TRI POINTE HOMES INC (TPH). This can be considered as Fairly Valued.
Can you provide the profitability details for TRI POINTE HOMES INC?
TRI POINTE HOMES INC (TPH) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for TPH stock?
The Earnings per Share (EPS) of TRI POINTE HOMES INC (TPH) is expected to decline by -41.41% in the next year.